What is “broadband”? US regulators raise their standards

The FCC's new 100/20 Mbps standard challenges international benchmarks and may redefine Australian broadband advertising.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia22 March 2024Period: March 20244 min read

100/20 Mbps↑

New FCC minimum fixed broadband benchmark (2024)

25/3 Mbps→

Previous FCC broadband benchmark adopted in 2015

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Abstract

This report analyses the Federal Communications Commission’s (FCC) decision to increase the minimum fixed broadband benchmark to 100 Mbps download and 20 Mbps upload. It examines the implications for Australia’s rural broadband strategy, specifically the 20% of regional premises currently lacking 100 Mbps access. The brief also explores how this international shift could influence the Australian Competition and Consumer Commission (ACCC) regarding the naming and advertising of 'basic' versus 'high-speed' service tiers.

Key Takeaways

The US FCC has raised the official broadband benchmark to 100 Mbps download and 20 Mbps upload, a fourfold increase in download requirements.
A new long-term aspirational goal of 1 Gbps / 500 Mbps has been set by the FCC to encourage future-proof network deployment.
The 2022 nbn Statement of Expectations already aligns with the 100 Mbps benchmark for 80% of regional Australia by 2025.

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Frequently Asked Questions

The US FCC has officially increased the fixed broadband benchmark to 100 Mbps download and 20 Mbps upload, representing a fourfold increase from the previous 25/3 Mbps standard. This shift establishes a new global floor for what constitutes 'basic' connectivity in developed markets.

Regulators have introduced an aspirational goal of 1 Gbps download and 500 Mbps upload to drive future-proof network investment. This long-term target provides a regulatory tailwind for NBN Co’s proposal to upgrade its 'Fast' tier to 500 Mbps.

While the 2022 Statement of Expectations targets 100 Mbps access for 80% of regional Australia by 2025, the new FCC benchmark exposes a policy gap for the remaining 20% of premises. These underserved areas now fall below the updated international minimum standard for fixed broadband.

The ACCC is likely to redefine 'basic' and 'standard' speed tiers to align with the 100/20 Mbps global minimum. Marketing 25 Mbps or 50 Mbps services as 'high-speed' will become increasingly difficult as regulators move toward the 1 Gbps aspirational benchmark.

What is “broadband”? US regulators raise their standards

Abstract

Key Takeaways

Frequently Asked Questions

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